The budget measures penalise foundations. Azzone (Acri): "A political decision"

Between Rome and Brussels. Italian philanthropy is striving to navigate the landscape and ensure that those in power in the government buildings fully understand its role. This is why the Cariplo Foundation has, for the first time, addressed the European Parliament directly to champion the causes of culture and philanthropy ahead of the European Union’s next budget, covering the period 2028–2034. ‘We need,’ argued Patrizia Asproni, a member of the board of directors, ‘adequate resources that are accessible even to the smallest and least structured organisations, and this must be achieved through dialogue between cultural organisations, public decision-makers and philanthropic institutions.’ But just as the chapter on relations with Brussels was opening, the Italian non-profit sector had to fend off an attack launched directly by the Meloni government, which has included an additional levy of 60–70 million on foundations in the forthcoming Budget Bill. A financial blow that Giovanni Azzone, president of ACRI (the Association of Foundations and Savings Banks) and of the Cariplo Foundation, did not take kindly to. Taxing non-profit organisations as if they were for-profit entities – “equating those who support the social development of communities with those engaged in financial intermediation” – means calling into question the very foundations of the third sector and drastically undermining its ability to operate. “It is tantamount to withdrawing support from 20,000 young NEETs who are neither in education nor employment, or from integration projects for 2,000 people with disabilities,” Azzone replied curtly to those (including the Vice-President of the Council, Antonio Tajani) who pointed out to him that the IRES measure would in any case be “a modest contribution”.

For Azzone, however, this is “a political choice” (coupled with the compulsory levy on banks) and, in some ways, his accusation also provides a key to understanding the combined effect of the Foundation’s initiatives in Brussels and Rome. The suspicion – held not only by Azzone – is that those in power are still struggling to understand the role played by the non-profit sector and to situate it within the contemporary world. The events unfolding in major European cities point to a growing rift between democracy and young people, and a worrying rise in nihilism. Organised philanthropy, however, aims precisely to step in and heal this wound: in one instance by using culture as a means of inclusion, and in another by playing a supporting role in mending society’s most glaring fissures. It is remarkable that, a few years on from the Covid pandemic – when, without the intervention of the third sector, we would have paid a much higher price – there is a desire to turn back the clock. The Cariplo Foundation and its president are convinced of this and have therefore deemed it appropriate to explain this at EU level as well.

But how will the dispute over the Budget Bill play out? The key figure is, of course, the head of the Ministry of Economy and Finance (MEF), Giancarlo Giorgetti, a Lombard who cannot fail to be aware of the role played by the Cariplo Foundation in the region on a day-to-day basis, given that over the last two to three years it will have disbursed approximately 220 million. The old Northern League, thanks to Roberto Maroni, had always recognised the role of philanthropy and appreciated the work of Giuseppe Guzzetti. Minister Giorgetti therefore knows that if foundations are taxed and treated as financial intermediaries, they will be forced to cut their grants. Who stands to gain from this? Certainly not those engaged in good politics in Lombardy, and even less so the ruling classes, who are increasingly finding that their voices go unheard in the suburbs. All that can be done is to hope that the latest rumours coming out of Rome prove true, according to which a compromise is being brokered with Giorgetti’s direct involvement. This would involve introducing an IRES tax regime compatible with the foundations’ aims and activities. We shall know more shortly, but in the meantime, Milan is not letting its guard down.